The Straits Times Index (SGX: ^STI) has experienced a remarkable surge in 2025, increasing by more than 21% year-to-date as of December 15th.
However, not all blue-chip stocks have equally benefited from these gains. While some familiar names have lagged, a select few have yielded substantial returns for shareholders, driven by enhanced fundamentals, strategic shifts, and prudent capital allocation.
As the year draws to a close, three stalwarts listed in Singapore—DFI Retail Group, ST Engineering, and Jardine Matheson—emerge as standout performers. Each tells a unique story but together offer valuable insights for dividend investors seeking enduring quality businesses.
Here’s the critical information you need to know.
DFI Retail Group (SGX: D01): Total Returns 105% YTD
In some cases, knowing when to divest is crucial. DFI Retail Group's strategic withdrawal from Yonghui and Robinsons Retail resulted in a one-time statutory loss this half-year. However, on closer examination, the company has transformed from a net debtor into a cash-rich asset, significantly benefiting shareholders.
DFI's market presence covers segments such as Health and Beauty (Guardian and Mannings), Convenience (7-Eleven), Food (Wellcome), Home Furnishings (IKEA), and Restaurants, through Maxim’s stake. For 1H2025, revenue stabilized at US$4.4 billion year-over-year. Notably, Health and Beauty showed a 4% like-for-like sales increase, though this was offset by declines in Convenience, affected by a cigarette tax increase in Hong Kong, and a softer Foods segment.
Beneath these figures, the underlying profit soared by 39% year-over-year to US$105 million, driven by improved associate contributions and reduced financing costs. Yet, a statutory loss of US$38 million was recorded, compared to last year’s profit of US$95 million, primarily due to losses from divesting Yonghui and Robinsons. Free cash flow rose 13% to US$422 million, and the balance sheet transformed from a net debt of US$468 million at the end of 2024 to net cash of US$442 million by mid-2025.
DFI declared an interim dividend of US$0.025 per share along with a special dividend of US$0.445 per share, marking its first special dividend in 18 years. Additionally, management raised the 2025 underlying profit guidance to between US$250 million and US$280 million, reflecting confidence in improved operational efficiency.
Singapore Technologies Engineering (SGX: S63): Total Returns 83% YTD
In a time fraught with geopolitical uncertainties, ST Engineering’s order book tells a reassuring story. This Singapore-based global technology and engineering group operates through Commercial Aerospace, Defence and Public Security, and Urban Solutions and Satcom segments.
For the initial nine months of 2025, revenue climbed 9% year-over-year to S$9.1 billion. Growth across the board was evident: Commercial Aerospace led with an 11% YoY increase to S$3.6 billion, Defence and Public Security rose 9% YoY to S$4.0 billion, and Urban Solutions and Satcom added 5% YoY to S$1.4 billion. Commercial Aerospace was buoyed by high demand for Engine MRO and Nacelles, while Defence and Public Security experienced broad growth across its sub-segments.
On portfolio management, divestments including LeeBoy, SPTel, and CityCab generated proceeds of S$594 million, resulting in after-tax gains of S$258 million. However, non-cash impairment losses of S$689 million with the iDirect Group led to a net loss of S$431 million post-tax.
For dividend investors, ST Engineering declared a third-quarter interim dividend of S$0.04 per share and plans to propose a final dividend of S$0.06 per share plus a special dividend of S$0.05 per share, bringing the total payout for FY2025 to S$0.23, up from S$0.17 in 2024. From 2026, the group will implement a progressive dividend policy, incorporating incremental dividends equivalent to one-third of the YoY increase in net profit.
Impressively, the order book reached a record S$32.6 billion by September 30, 2025, with contracts totaling S$14.0 billion for 9M2025. Group President and CEO Vincent Chong highlighted the company’s financial robustness, allowing reinvestment for growth while advancing its mid-term strategies.
Jardine Matheson (SGX: J36): Total Returns 76% YTD
Diversification often bears the brunt of skepticism, yet Jardine Matheson’s first-half results challenge this notion. Spanning retail, property, hospitality, and automotive sectors across Asia, this 193-year-old conglomerate saw a 45% surge in underlying profit.
Jardine Matheson’s portfolio encompasses DFI Retail, Jardine Cycle & Carriage (SGX: C07), Hongkong Land (SGX: H02), Zhongsheng, and Mandarin Oriental (SGX: M04). For 1H2025, revenue slightly dipped by 1% YoY to US$17.1 billion. Nevertheless, underlying profit rose 45% to US$798 million, backed by stronger performance from Hongkong Land and DFI Retail.
As of June 30, 2025, Jardine Matheson held robust cash reserves of US$5.4 billion and total debt amounted to US$15.1 billion, reducing gearing from 14% at the end of 2024 to 11%. The board maintained an interim dividend of US$0.60 per share. Looking forward, management anticipates full-year performance to align broadly with the previous year, accounting for the impact of 2024 impairments by Hongkong Land.
The group remains committed to transitioning to an engaged investor model, reinforcing its leadership teams to initiate new strategies across the portfolio companies.
Get Smart: Quality over Flash
A common element among these blue chips is their strategic capital allocation. DFI’s strategic exits from underperformers exemplify a focus on generating returns rather than empire building. ST Engineering’s solid dividend record underscores the value of stable income streams from defense and aerospace contracts. Meanwhile, Jardine Matheson’s diversified holdings, managed by invested operators, provide access to Asia’s long-term growth.
More importantly, these companies reward investors as they reshape their business models. The results underscore a fundamental lesson: quality enterprises with robust financial foundations often deliver enduring returns for patient investors. The key is persistence.
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